End-of-aisle price promotions changes the price elasticity

Reference no: EM13692269

An end-of-aisle price promotions changes the price elasticity of a good from -2 to -3. If the normal price is $10, what should the promotional price be? Use (P - MC)/P = 1/?e? to calculate MC and then use the same equation to find out the new price.

Reference no: EM13692269

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End-of-aisle price promotions changes the price elasticity : An end-of-aisle price promotions changes the price elasticity of a good from -2 to -3. If the normal price is $10, what should the promotional price be? Use (P - MC)/P = 1/?e? to calculate MC and then use the same equation to find out the new price.

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